ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet meeting, held under the chairmanship of Finance Minister Ishaq Dar, has approved extensive long-term tax concessions for two Chinese companies operating in the country under the China-Pakistan Economic Corridor project.
The ECC approved tax exemptions to the tune of Rs33 billion for two Chinese firms – the China State Construction Company Engineering Company (CSCEC) and the China Communication Construction Company (CCCC) – that are working on two infrastructure projects.
The ECC accorded approval to write off Rs29.23 billion in favour of CSCEC that has been constructing Sukkur-Multan section of the Lahore-Karachi motorway. An amount of Rs19.1 billion has been written off in lieu of customs duty for importing equipment, materials, plants, machinery, appliances and accessories used in the project. Another Rs10.2 billion has been waived on account of withholding taxes.
The ECC also approved duty/tax write-off to the tune of Rs3.7 billion in favour of CCCC. The company has been constructing the Thakot-Havelian section of the Karakoram Highway under the CPEC.
The exemptions have been given under the Framework Agreement the two countries had signed when Chinese President Xi Jinping visited Pakistan last year.
